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Markets of India: A Wealth of Opportunity

April 09, 2018

By: Savannah Klein

India is not only a beautiful country with a diverse collection of
languages and cultures; it is also the world’s fourth
largest economy. With a declining poverty rate, a
population of more than 1.3 million,
and increasing GDP, India has
become an immense point of interest to those looking to expand their
business internationally.

Economic Overview

India is a mixed
economy that is one of the fastest growing in the world. In fact,
many expect it to become one of the top three global economic
powers in the next ten to fifteen years. Facts supporting this
prediction are: the 7.1% growth rate of India’s GDP from 2016 to 2017,
an improved Doing
Business Ranking of 100 out of 190 countries, and the boom of
India’s startups,
including more than 4,750 technology companies. According to the
Boston Consulting Group, the main forces behind
India’s growth and increasing consumption are rising levels of
affluence, continuous urbanization, and shifting family structures.

India and the United States

India’s immense growth has provided numerous possibilities for both
domestic and global business. The U.S. has already taken advantage of
these opportunities, making it India’s
largest trading partner. Since 2016, U.S. exports to
India have increased 5.8% and imports from
India have increased 4.8%. The main U.S. exports to
India included precious metals, medical instruments, agricultural
products, and mineral fuels. The top imports from
India were pharmaceuticals, precious metals, mineral fuel, and
agricultural products. This bilateral trade relationship promotes U.S.
expansion into the Indian industries of
defense, education, energy, technology, banking, and more.

Cultural Etiquette

Beyond analyzing a country’s growth potential, it is crucial to
understand the culture of the country in which you are conducting
business to succeed. When meeting with an Indian business partner,
he/she will most likely speak English, and they may arrive fifteen to
thirty minutes late.
Saying Namaste or
giving handshakes with no other forms of physical contact, are common
greetings. However, handshakes with
members of the opposite sex have yet to be completely embraced, so be
aware of the environment before doing so. It is important to address
people individually,
starting with the oldest member of the group and using professional
titles such as Mr. or Ms. The exchange of business
cards or small gifts during a first meeting is a widespread
practice. Be sure to receive those with the right hand to avoid any disrespect.

In business environments, the majority of
men wear suits, and women typically wear pantsuits or long skirts.
Nevertheless, this can change depending on the company or city. When
dining with a business partner, numerous dishes are shared with the
entire table. Be sure to note that the right hand is used to eat,
although when entertaining guests from other cultures many Indians are
okay with their guests using cutlery. It is considered extremely disrespectful to
eat using the left hand or to take any food off someone’s personal plate.

Keep in mind, however, that India is a diverse country with many
different languages and customs, so these cultural norms will vary by
region. It is wise to research the specific city to which you are
traveling in order to adequately prepare for any language differences
or cultural nuances.